Union: New Jersey casino warns of possible closure

Published on NewsOK Modified: June 26, 2014 at 9:23 pm •  Published: June 26, 2014
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ATLANTIC CITY, N.J. (AP) — Workers at Atlantic City's Showboat Casino Hotel will receive notices on Friday warning that the casino may close in two months, a union official said Thursday.

Bob McDevitt, president of Local 54 of the Unite-HERE union, said a Caesars Entertainment executive told him that the casino's approximately 2,500 workers would get so-called WARN Act notices on Friday.

Those notices are required under federal law to give employees 60 days' notice that their company could be closing.

McDevitt called the closing threat "a criminal act."

Caesars Entertainment officials did not return messages seeking comment Thursday night. The Mardi-Gras-themed Showboat is one of four casinos that the company runs in Atlantic City.

McDevitt said he has not seen the notice and that a top Caesars Entertainment executive did not go into detail about what it would say.

"We were contacted by the company today that the warning notices would be issued on Friday," McDevitt said. "I don't have a copy of the notice. But they're pretty straightforward: they tell you you have 60 days."

It is possible the notices could be rescinded if circumstances change. Revel Casino Hotel issued WARN notices to its own workers earlier this month just before it filed for bankruptcy for the second time in as many years. The notices told workers that Revel could close this summer if a buyer is not found in bankruptcy court.

But McDevitt said he is convinced Caesars intends to close the Showboat, the poorest-performing of its Atlantic City casinos.

"Caesars closing a casino which remains profitable with positive (earnings) is a criminal act committed on the people of Atlantic City," he said.